The £18 million scheme will include one, two and three-bedroom homes when it completes at the end of 2019.
Aidid Djibril, Development Manager at Wandle, said: “We are pleased to have started work on this exciting project in Merton, just moments away from Wandle’s very first home.
“With a long history of providing homes for people in south London, receiving planning permission to continue to deliver much-needed affordable housing for local people in the borough is excellent news.”
The scheme, designed by Architects Plus, is within walking distance to Raynes Park and Motspur Park, both serving Waterloo via Clapham Junction.
The homes at Albany House will achieve Code for Sustainable Homes Level 4.
As well as Albany House, we are also building new homes for shared ownership at a scheme on Rock Close, Merton.
In total, we plan to build 1,000 homes in south London by 2021 as part of our ambitious development programme to deliver much-needed housing for local people.